The Closets by Design Franchise offers entrepreneurs a proven opportunity to enter the rapidly expanding home organization and storage solutions industry—a market valued at more than $7 billion annually in the U.S. Known for its custom-built closets, garage systems, home offices, and pantries, the brand combines design expertise, precision manufacturing, and in-home sales into a streamlined, scalable business model.

Founded in 1982, Closets by Design has grown into one of North America’s best-recognized names in custom home organization, supported by a strong national network of franchisees. Each location provides personalized design consultations and locally manufactured products, giving owners a way to build community-based businesses with recurring demand from homeowners seeking functionality, organization, and style.

According to the company’s Franchise Disclosure Document (FDD), the estimated initial investment ranges between $154,000 and $511,000* depending on factors such as market size, real estate, and local buildout costs. The franchise model is designed for both hands-on operators and executives seeking to lead design, sales, and installation teams supported by a dedicated corporate system.

With over 40 years of operational experience, Closets by Design provides a well-defined framework for new owners—covering everything from training and marketing to manufacturing setup and customer service systems.

This guide explores the brand’s history, startup costs, franchise structure, owner responsibilities, and training programs. You’ll also learn about the market trends fueling the home organization category, so you can evaluate whether a Closets by Design Franchise aligns with your entrepreneurial and lifestyle goals.

For objective franchise education, frameworks, and evaluation checklists, visit the Franchise Brokers Association (FBA) Blog, where you can learn how to analyze opportunities like Closets by Design alongside other nationally recognized home improvement brands.

This article is sponsored by Closets by Design. The content has been created in partnership with the brand to provide accurate, compliance-safe insights into its business model and franchise opportunity.

What Is Closets by Design?

Closets by Design is a full-service home organization franchise that specializes in designing, manufacturing, and installing custom storage systems for homeowners. The brand’s mission is to help clients organize their living spaces with personalized, high-quality designs that combine functionality, style, and craftsmanship.

Founded in 1982 in California, Closets by Design was one of the first companies to introduce the concept of professionally designed custom closets—well before the home organization industry became mainstream. Over the decades, the brand has expanded its offerings to include walk-in closets, home offices, pantries, garage cabinetry, laundry areas, wall beds, and hobby or craft spaces, reflecting the modern homeowner’s desire for efficiency and aesthetic appeal.

The franchising entity, CBD Franchising, Inc., operates under the parent company Home Organizers, Inc., headquartered in Garden Grove, California. This structure provides franchisees with comprehensive operational systems, training, and manufacturing support while maintaining national design consistency and brand standards.

Closets by Design’s franchise model is built around a vertically integrated approach—each local franchise handles design consultations, production, and installation within its market. This allows owners to manage the customer experience end-to-end, ensuring quality control, faster turnaround times, and consistent customer satisfaction.

As of late 2025, Closets by Design operates over 75 franchised locations across North America, supported by a dedicated corporate team and strong brand recognition. Continued growth in the home improvement and home organization sectors has positioned the company as a long-standing leader in a category that continues to see steady, year-round demand.

The Home Organization Market: Why This Industry Keeps Growing.

The home organization industry has evolved from a lifestyle trend into an essential service category, reflecting how Americans live and work today. Once viewed as a luxury upgrade, professional organization and custom storage systems are now part of mainstream home improvement — driven by the rise of remote work, higher housing costs, and the growing demand for efficient, multi-purpose spaces.

According to industry analyses from Business Wire and GlobeNewswire, the U.S. home organization products market has been valued at approximately $12 billion in recent years, with steady annual growth of about 4–5%. Globally, the market is projected to continue expanding through the end of the decade, fueled by innovation in modular design, sustainability, and customization trends.

Key Demand Drivers.

• Remote and hybrid work lifestyles: As more professionals work from home, spare bedrooms and closets are transforming into multi-functional spaces, creating new demand for custom-built storage and workspace solutions.
  
• Aging in place: Older homeowners are investing in accessible, ergonomic organization systems that make everyday living easier and safer.
  
• Millennial and Gen Z homeowners: Younger buyers increasingly expect both functionality and aesthetics in their homes — custom design and efficient storage have become baseline expectations, not luxuries.
  
• Urban living and renters: Apartment and condo dwellers seek modular, space-saving solutions that add livability and design appeal without requiring full-scale renovations.

In short, organization and storage have become integral to modern home design, offering lasting relevance across demographics and home types. With consistent demand from homeowners and renters alike, the category remains one of the most stable and adaptable segments within the broader home improvement industry.

What Makes the Closets by Design Franchise Unique.

The Closets by Design Franchise stands out in the home improvement sector for its vertically integrated model, which combines design consultation, manufacturing, and installation within a single, streamlined system. This structure gives franchise owners direct oversight of every stage of the customer experience — from the first consultation to the final installation — ensuring consistency, quality, and operational efficiency.

Unlike many competitors that outsource production or rely on third-party installers, Closets by Design franchisees manage their own local manufacturing and design operations. This integrated approach helps reduce lead times, maintain quality standards, and strengthen client relationships — while also allowing franchisees to capture revenue across multiple service components, including design, materials, and installation.

Core Differentiators.

• Exclusive Design Software – Franchise owners use proprietary CAD-style technology that enables precise measurements, instant pricing, and detailed project visualizations. This software simplifies sales consultations and enhances customer confidence during the design phase.
  
• Local Manufacturing Capabilities – Each franchise includes a light-production setup that allows for on-site fabrication of materials. This reduces shipping costs and delays while supporting local customization and faster turnaround times.
  
• Protected Territories – Franchisees receive exclusive territories that typically cover at least 250,000 households, offering strong market potential and minimizing intra-brand competition.
  
• Customer Satisfaction Focus – The brand consistently reports strong customer satisfaction and referral rates, driven by professional design service, durable materials, and a long-standing reputation for craftsmanship and reliability.
  
• Proven Durability – The Closets by Design model has demonstrated long-term stability, remaining fully operational through multiple economic cycles — including the 2008 recession and the COVID-19 pandemic — reflecting steady consumer demand for home organization solutions.

By integrating every phase of the business — from consultation and production to installation — Closets by Design gives franchise owners the tools to control quality, manage operations efficiently, and deliver consistently positive client experiences. This combination of brand legacy, systemized processes, and enduring consumer demand makes it one of the most established and resilient opportunities in the custom home organization market today.

How Much Does a Closets by Design Franchise Cost?

According to the Franchise Disclosure Document (FDD), the estimated initial investment required to open a Closets by Design franchise ranges from $154,000 to $511,000*. This range includes the franchise fee, territory fee, training expenses, equipment, marketing, and working capital, with exact costs varying by territory size, market type, and build-out requirements.

Estimated Startup Costs.

(Single Territory — Based on 2025 FDD)

Type of Expenditure	Low Estimate*	High Estimate*
Initial Franchise Fee	$20,000	$20,000
Territory Fee	Greater of $18,000 or $1,000 per 10,000 households	Varies
Market Development Fee	Varies	Varies
Travel & Living (Initial Training)	$2,500	$3,500
Furniture, Fixtures & Equipment (incl. computer)	$37,000	$254,000
Grand Opening Advertising (first 3 months)	$30,000	$45,000
Inventory & Supplies	$10,000	$25,000
Deposits for Vehicles	$1,000	$4,000
Interior & Exterior Signs	$500	$1,000
Licenses & Permits	$500	$1,500
Rent (3 months)	$2,000	$12,000
Retail Shop Build-Outs & Improvements	$5,000	$30,000
Business Insurance	$1,500	$2,000
Legal & Accounting	$1,000	$3,000
Additional Funds (first 3 months)	$25,000	$75,000
Total Estimated Investment	$154,000	$511,000

*All figures are drawn from the Closets by Design Franchise Disclosure Document (Item 7) and represent best available estimates. Actual costs may vary depending on factors such as territory size, local construction costs, and business scale.

Understanding the Investment Range.

The investment range reflects the flexibility of the Closets by Design model, which can scale to fit a variety of markets — from smaller suburban service areas to large metropolitan territories. The inclusion of local manufacturing and design operations accounts for the higher equipment and setup range compared with purely retail-based franchises.

For many franchisees, this integrated setup allows closer control over production quality, project timing, and customer experience, which are central to the brand’s reputation in the custom home organization industry.

Training and Support: What Franchise Owners Receive.

The Closets by Design franchise is built around a strong foundation of training, mentorship, and ongoing operational guidance, designed to help new owners confidently manage every aspect of their business — even without prior experience in design, manufacturing, or construction. The franchisor provides a structured onboarding system that combines classroom instruction, hands-on learning, and continuous field support.

Initial Training Program.

Every new owner attends a multi-phase onboarding process that covers the essential components of the Closets by Design business model. Training takes place both at the company’s headquarters and in the field, providing real-world exposure to sales consultations, production workflows, and installation standards.

Key elements of the initial training include:

• Design and Sales Training – Franchisees learn to use proprietary design software to create, visualize, and price custom projects efficiently. The program covers best practices in client consultation, design presentation, and proposal generation.
• Manufacturing and Installation Management – Owners receive guidance on overseeing production flow, materials handling, and installation quality, with practical instruction in equipment setup, layout optimization, and safety compliance.
• Business Operations and Financial Management – Training includes education on cost tracking, staffing, scheduling, and key performance metrics that support day-to-day decision-making.
• Marketing and Local Outreach – The franchisor provides access to turnkey marketing programs, local advertising templates, and corporate brand assets to help owners launch and grow their territory presence effectively.

Ongoing Franchise Support.

Once operational, franchise owners continue to receive structured support and business coaching from the Closets by Design corporate team. The system is designed to foster long-term success through collaboration, mentorship, and shared learning among franchisees.

Core areas of ongoing support include:

• Dedicated Field Consultants – Regional coaches provide ongoing performance reviews, business analysis, and guidance on operations and growth.
• National and Local Marketing Resources – Franchisees benefit from coordinated national advertising campaigns, professionally designed materials, and customizable local marketing templates.
• Vendor Network Access – Preferred suppliers and negotiated pricing help maintain quality and consistency while improving purchasing efficiency.
• Continuous R&D and Innovation – The brand invests in design trend research, new materials, and evolving technology to keep franchisees aligned with consumer expectations.
• Annual Conferences and Peer Collaboration – Franchise owners meet regularly to exchange best practices, review system updates, and connect with the broader Closets by Design community.

The brand’s collaborative culture is frequently cited by franchisees as one of its greatest strengths. Owners are encouraged to share insights, performance strategies, and operational improvements through regional meetings and peer-led forums, reinforcing the network’s sense of partnership and mutual support.

Day in the Life of a Closets by Design Franchise Owner.

Owning a Closets by Design franchise offers a balance of creative fulfillment and operational leadership, giving entrepreneurs the opportunity to work closely with both clients and teams. The role blends sales, design collaboration, production oversight, and customer relations — with each day bringing a mix of strategy and hands-on management.

Typical Daily Flow.

• Morning: The day often begins by reviewing installation schedules and confirming the day’s appointments. Franchise owners check new leads generated through corporate and local marketing campaigns, assign consultations to designers, and ensure the production team has all materials ready for upcoming jobs.
  
• Midday: Many owners visit client homes or active job sites to observe installations, ensuring projects meet Closets by Design’s quality and safety standards. This is also a time to connect with designers, provide feedback, and build relationships that encourage referrals and repeat business.
  
• Afternoon: The focus shifts to design and production coordination — reviewing client proposals, approving design concepts, and verifying orders for manufacturing. Owners often collaborate with their production managers to streamline workflow and maintain efficiency.
  
• Evening: Before wrapping up, franchisees typically review daily metrics such as sales performance, installation completion rates, and lead conversions. Administrative tasks like updating the CRM system, managing staff schedules, and preparing for the next day’s consultations are common.

Closets by Design franchise owners serve as both leaders and brand ambassadors within their markets. Their role involves guiding a small, skilled team of designers, installers, and administrative staff while maintaining strong customer relationships and community visibility.

Owners don’t need to perform design or installation work themselves — instead, they focus on managing operations, driving sales growth, and ensuring exceptional client satisfaction through organized processes and corporate support systems.

This combination of creative engagement and operational structure makes the Closets by Design model appealing to professionals who enjoy business development, team leadership, and delivering meaningful home transformation experiences.

Advantages of Owning a Closets by Design Franchise.

The Closets by Design franchise offers a combination of brand reputation, operational efficiency, and long-term market relevance that appeals to entrepreneurs seeking a proven concept in the home improvement sector. With over four decades of experience and a national footprint, the brand provides franchisees with a strong platform to serve both residential and commercial clients while maintaining creative, design-driven appeal.

1. Established Brand Credibility

Founded in 1982, Closets by Design has become one of the most trusted names in home organization. Its longstanding presence and reputation for quality craftsmanship help franchisees earn immediate recognition among homeowners, interior designers, and builders — a key advantage when entering local markets.

2. Diverse Service Offerings

Franchise owners provide a wide range of home organization solutions, including custom closets, garages, home offices, pantries, laundry rooms, and wall beds. This variety allows each location to meet different homeowner needs and adapt services to local demand and lifestyle trends.

3. Proprietary Design Technology

Each franchise uses exclusive, proprietary design software that simplifies the process of creating 3D visualizations and precise pricing for customers. This technology not only enhances the client experience but also increases operational efficiency and helps close sales more effectively.

4. Growing Industry Demand

The home organization market continues to expand as homeowners seek customized, space-saving solutions. Whether driven by remote work, smaller home footprints, or lifestyle upgrades, the category has proven to be both steady and scalable, with consistent demand across all demographics.

5. Scalable Business Model

Franchisees can start with a single protected territory and expand into additional markets or related service categories as their business grows. This scalability allows owners to increase volume through multiple sales teams, larger production facilities, or adjacent service lines over time.

6. National Buying Power

Through a centralized vendor and supplier network, Closets by Design franchisees benefit from preferred pricing on materials, hardware, and equipment. This collective purchasing power helps maintain quality while protecting profit margins from market fluctuations.

7. Proven Business Resilience

The Closets by Design model has weathered multiple economic cycles, maintaining operations and growth through the 2008 recession and the COVID-19 pandemic. Its focus on essential home-improvement services, coupled with a strong brand identity, has helped franchisees sustain performance during uncertain periods.

Closets by Design stands out in the home improvement category for combining creative design, durable demand, and an established franchise framework. With diversified revenue streams, scalable growth options, and comprehensive support, it appeals to entrepreneurs who want to align with a proven brand while maintaining local ownership and autonomy.

Overcoming Common Objections.

One of the most common questions prospective owners ask about the Closets by Design franchise is whether the manufacturing element makes the business too technical or complex. The truth is that the system was intentionally engineered to be accessible, even for entrepreneurs without prior experience in production, design, or construction.

No Industry Experience Required.

• More than 90% of current franchise owners entered the system from non-manufacturing or non-construction backgrounds. The franchise’s comprehensive training and ongoing mentorship ensure that every owner learns how to manage design, production, and installation workflows with confidence.

Streamlined Operations and Systems.

• Closets by Design’s business model integrates turnkey operational tools that simplify each stage of the process—from design and material selection to fabrication and installation oversight. Owners follow clearly defined systems and best practices refined over more than four decades of field experience.

Support for Hiring and Staffing.

• Recruiting skilled production and installation team members is supported through ready-to-use hiring templates, job descriptions, and training materials provided by the franchisor. This structure allows franchisees to build efficient, dependable teams without having to start from scratch.

Scalable Workforce Management.

• Franchisees can begin operations with a lean core team and expand their staff as project volume grows. The scalable model helps new owners control costs early on while positioning their business for sustainable, managed growth.

Business-Minded, People-Focused Approach.

• Success in this franchise isn’t about operating machinery—it’s about organization, leadership, and customer relationships. If you’re detail-oriented, proactive, and enjoy working with clients and teams, Closets by Design gives you the framework, training, and systems to handle the rest.

Closets by Design was created for entrepreneurs, not engineers. With proven systems, in-depth training, and ongoing support, the brand enables franchisees from all backgrounds to deliver professional, high-quality results—without needing a technical or trade background.

Who Is the Ideal Closets by Design Franchise Owner?

The Closets by Design franchise attracts business-minded professionals who enjoy leadership, customer engagement, and building teams. While creativity and an appreciation for home design are helpful, franchisees don’t need technical design or construction experience to thrive. The system is designed for individuals who excel in management, organization, and people development — not necessarily craftsmanship.

Ideal Candidate Profile.

The most successful franchise owners typically share several common traits and professional backgrounds:

• Sales and Marketing Experience: Many franchisees come from corporate, retail, or service-based sales roles where client interaction and relationship-building are core skills. The ability to communicate value and deliver great customer experiences translates naturally into this business.
• Operational or Management Background: Experience in operations, logistics, or team leadership helps owners coordinate staff, manage scheduling, and oversee production workflows. The franchise’s systems and support structure simplify these functions, allowing owners to focus on execution and growth.
• Appreciation for Home Design and Aesthetics:While no design background is required, owners who enjoy interior organization, home improvement, and visual presentation often find this business especially rewarding. The model blends creativity with structured systems and tangible results for clients.
• Desire for Scalability and Long-Term Growth: Closets by Design appeals to entrepreneurs who want a sustainable, recession-resistant business with room to grow. The model supports expansion through additional territories, service lines, or larger production facilities as sales volume increases.
• Community-Focused Leadership: Franchise owners often become trusted local partners, helping homeowners transform their living spaces while contributing to community visibility through events, referrals, and partnerships with local builders or real estate professionals.

Closets by Design is best suited for motivated leaders who combine organization, empathy, and business acumen. If you enjoy guiding teams, building client relationships, and delivering high-quality services backed by a respected national brand, this franchise provides a structured path to long-term professional fulfillment.

Challenges to Consider.

Like all home-service and retail-based businesses, operating a Closets by Design franchise comes with both opportunities and responsibilities. Franchisees who succeed long-term typically combine strong leadership with close attention to operations, staffing, and customer service.

Some of the most common challenges include:

• Recruiting and Retaining Skilled Staff: Quality installers and designers are essential to maintaining the brand’s craftsmanship standards. Finding and keeping talent requires ongoing attention to culture, training, and scheduling.
• Managing Cash Flow During Ramp-Up or Expansion: Early-stage businesses often balance marketing investment, staffing costs, and production setup. Proper financial planning is key during the first several months of operation.
• Adapting to Housing and Renovation Cycles: While home organization is a stable category, local housing activity and economic conditions can influence project volume at certain times of year.

The benefit of joining Closets by Design is that these challenges are met with robust systems, vendor support, and proven operational tools that significantly reduce the risks typically faced by independent startups. Franchisees are never alone — they have access to corporate field consultants, peer collaboration, and decades of best practices to guide their decisions.

Closets by Design offers a structured business model in a growing industry, supported by strong validation and community among franchisees. While success requires focus and effort, the brand’s training, technology, and vendor partnerships provide the foundation for a well-supported and scalable operation.

Frequently Asked Questions.

How much does it cost to open a Closets by Design franchise?
According to the Franchise Disclosure Document (FDD), the total estimated investment to open a Closets by Design franchise ranges from $154,000 to $511,000*. This includes the franchise fee, territory fee, showroom and production setup, and working capital for the first three months of operation. Actual costs may vary depending on territory size, local market conditions, and build-out expenses.

Do I need manufacturing or construction experience?
No prior manufacturing or trade experience is required. The franchisor provides comprehensive, hands-on training covering every aspect of operations — from design and sales consultations to production management and installation quality control. The business model was developed for entrepreneurs with management, sales, or customer service backgrounds rather than technical experience.

Can I work from home?
While some administrative and sales functions can be handled remotely, each franchise requires a light manufacturing or warehouse facility to support production and installations. The size of this space depends on local demand and territory scale but is typically more compact than a retail storefront.

Is financing available for new franchisees?
Yes. Closets by Design offers internal financing options for certain territory fees and maintains relationships with third-party lenders and SBA-preferred banks. Candidates should review their personal financial qualifications and discuss available financing programs directly with the franchisor during the discovery process.

How large is a typical franchise territory?
Each Closets by Design franchise is granted a protected territory covering a minimum of 250,000 households, helping ensure strong market potential and clear geographic boundaries between owners. Territory size may vary based on population density and regional demographics.

What kind of ongoing support will I receive?
Franchisees receive comprehensive, ongoing support from the Closets by Design corporate team, including marketing assistance, operational coaching, vendor access, and continuous product and design updates. The brand also facilitates regional meetings and national conferences where franchisees collaborate, share best practices, and stay aligned with new innovations in home organization.

Is the Closets by Design Franchise Right for You?

If you’re an entrepreneur seeking a business that blends creativity, leadership, and meaningful community impact, the Closets by Design franchise may be an excellent fit. The model attracts individuals who value structure, proven systems, and the satisfaction of helping homeowners transform their spaces through functional, custom design.

Closets by Design offers a combination of qualities that few franchises in the home-improvement sector can match:

• Proven Business Longevity: With more than 40 years of experience, the brand has established itself as one of the most trusted names in custom home organization.
• Recognized National Reputation: Consistent craftsmanship, customer satisfaction, and quality service have built strong brand credibility across North America
• Streamlined Tools and Systems: Proprietary design software, efficient manufacturing processes, and tested marketing programs simplify operations and support growth at every stage.
• Collaborative Franchise Culture: Owners benefit from a supportive community that emphasizes mentorship, shared learning, and consistent communication with the franchisor’s leadership team.

If you’re organized, goal-oriented, and ready to grow a locally respected business backed by a nationally recognized brand, Closets by Design provides the structure and support to help you succeed in the booming home-organization market.